DEFI is not just about providing liquidity

Make every dollar efficient and profitable in a market connected and working 24 hours a day, 365 days a week.

Eradicate usury (the middleman), who keeps part of your profits just for generating trust in a simple transaction or for giving you access to professional money. In DeFi you only pay for use and only to the one who provides the infrastructure that makes it possible for you to operate.

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I am going to detail NEAR and its environment in a superficial way, to finish with a simple strategy that can already be applied in its small ecosystem defi.

NEAR PROTOCOL:

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Near is a layer 1 blockchain that operates with SC, which allows its users to access games, staking, defi, nft, dao’s and many other options. With great scalability thanks to Nightshade technology (currently in the testing and development phase) we are facing an evolution to the fragmentation technology known as Sharding, allowing more than 100,000 transactions per second at a cost of $0.01.

With the backing of more than 40 major funds and firms (only polkadot has more institutional investors than Near), there is no doubt that they will manage to take Near to the top thanks to a very well designed growth plan, worked quietly throughout 2020 and 2021.

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In addition developers have high incentives to build new projects and launch them on Near’s blockchain (much higher than terra, fantom or solana). It is currently ahead of all of them in terms of the number of developers working on it, so great advances, innovations and a quite organic and sustained growth of the Near blockchain are coming.

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It is therefore to be expected that Near will make a strong filter when listing and hosting projects, avoiding those of dubious reputation among incentives, developers and the Near team itself.

Mention that within Near we have another layer 2 blockchain, Aurora, which uses solidity as programming language (the same used in Ethereum), therefore this layer 2 works as an EVM of ethereum, so it will not be difficult to attract liquidity and compatible projects by using the same programming language (Polygon, Fantom, Avalanche, Binance smart chain, etc..).

NEAR DEFI

As we can see in the image, NEAR is currently in a clear ATH of TVL, accumulating at the date of writing this article 483 million dollars blocked within its platforms.

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Among them there is one that has caught my attention because it offers a service that is currently very fashionable and especially demanded by large producers of profitability (the defi pro). Meta Pool (https://metapool.app/) is a “liquid staking” protocol, a vital, functional and tremendously enriching service for a blockchain and its native token, since it takes the concept of staking to the next level. Once we have done the staking a token representative of the stake (stNEAR) which we can use in other platforms to leverage on it and be tremendously productive.

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 DeFi Strategy: Basic Income Product + Structured Product

Step 1) 

From the NEAR I have in my portfolio, I take 50% to metapool.app and perform its “liquid staking”, currently this simple operation brings me an annual interest rate of 11%.

Step 2)

I am going to use the stNEAR offered to me as a deposit guarantee to the liquid staking (specifically 50% of those stNEAR) to make a simple deposit in Bastion Protocol (app.bastionprotocol.com), this operation brings me an annual interest rate of 4.86%.

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Step 3)

The most tedious step, research and find a platform that allows me to make a use of remaining 50% stNEAR tokens I still have available. The option I am looking for in particular is to provide this liquidity in a pair by farming (providing liquidity only in a pool is not interesting in terms of the risk/reward and thus be able to further develop my thesis and optimization strategy, both time and capital.

Step 4)

In this step for financial loopholes I found the Tri Solaris protocol (www.trisolaris.io), a decentralized exchange created on the Near blockchain, but running on the Aurora engine. Therefore to continue with this option I must use a bridge that transfers from the NEAR EVM to the Aurora network, that way I can exchange my stNEAR for wNEAR token. That way Aurora recognizes me and I can  continue working on Tri Solaris. The bridge chosen for this case is rainbowbridge.app/transfer.

Step 5)

With the wNEAR tokens that I now have in my wallet I will perform a swap in TriSolaris to exchange them for the TRI token at 50% (the native token of the platform) and I will put these TRI tokens on deposit to generate an annual interest rate of 63%. 

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*There are other options to get more profitability out of this platform using the farms with auto compound between the stNEAR and xTRI token, but I think it is too much of a stretch for this article, and there is no need to complicate what we can do in a simple way and get a good annual interest rate in return.

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Step 6)

With the remaining NEAR tokens I have left in the portfolio (50% to be exact) I will finish my strategy by going to NeadPad.io and provide liquidity in the FRAX/NEAR pair which is generating an annual APR of 73%.

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In summary, with single token and 6 steps I have gone from having capital sitting still and unproductive to:

Generating 11% APY on metapool.app.

Generating 4.86% APY on app.bastionprotocol.com

Generating 63% APY on www.trisolaris.io

Generating 73% APY on NeadPad.io

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Today thanks to technology and financial engineering, if you are not able to get a 50% annual return on your money you don’t have a problem, you have a time lag.

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